Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Judiciary and Hawaiian Affairs, to which was referred S.B. No. 437 entitled:

begs leave to report as follows:

The purpose of this measure is to require state employees to recuse themselves from taking any official action affecting a business or other undertaking in which that employee's brother, sister, parent, or emancipated child has a substantial financial interest.

Testimony in support of the measure was submitted by the State Ethics Commission and the League of Women Voters of Hawaii.

Currently, the law requires recusal when the state employee's action would directly affect a business or undertaking in which the employee, the employee's spouses or dependent children has a substantial financial interest. This measure will prohibit a state employee from taking any official action that affects a business or undertaking in which the employee's brother, sister, parent, and emancipated child has a substantial financial interest.

As affirmed by the record of votes of the members of your Committee on Judiciary and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 437 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.